Personal Finance

Here's How Retirement Saving Changed in 2015

Source:

IRS.

Finally, the income thresholds to deduct traditional IRA contributions on a 2015 tax return are slightly higher than they were in 2014. If you're not eligible to participate in an employer's plan but your spouse is, you can deduct traditional IRA contributions as long as your joint AGI is below $193,000, up from $191,000 in 2014. For those who are covered by an employer's plan, contributions can still be deducted with AGI below $71,000 and $118,000 for single and joint filers, respectively, up from $70,000 and $116,000 in 2014.

Other changes

There were a couple of other changes to retirement savings in 2015 that are worth mentioning.

A new rule regarding IRA rollovers went into effect in January limiting IRA rollovers to one per year between accounts of the same type. In other words, if you want to combine two traditional IRA accounts by rolling one into another, you won't be allowed to roll over another traditional IRA for another year. Here's a table from the IRS that clarifies the rollover rules.

Source: (link opens PDF).

IRS (link opens PDF).

Finally, the amount of income subject to Social Security tax increased from $117,000 in 2014 to $118,500 in 2015. This change affects high-income individuals and can result in a maximum of $93 in additional Social Security tax for employees and $186 for self-employed individuals.

2016 will be a year of fewer changes

While there's no way to predict with absolute certainty what will happen in the coming year, all signs so far indicate a quiet 2016 in terms of changes to retirement savings. Thanks to stagnant inflation in 2015, the retirement savings contribution limits remained the same, and slight adjustments were made to certain income thresholds.

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The article Here's How Retirement Saving Changed in 2015 originally appeared on Fool.com.

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